The Integrated Forest Biorefinery

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1 The Integrated Forest Biorefinery Markku Karlsson UPM-Kymmene Corporation EUROPEAN CONFERENCE on BIOREFINERY RESEARCH Helsinki, 19 and 20 October 2006

2 Outline Transformation: an industry in transformation prompts action and change in forest cluster structure Two suplementary platforms, FTP (Forest-Based Industries Technology Platform) and BFT (Biofuels for Transport) outline major transformation efforts How we communicate with EU-level roadmaps: The Finnish ClusterTech project Technology Development: Trends and Examples Conclusion

3 Business Environment Paper Industry in Transformation 90 s Today Industry behavior Struggle within the industry going from regional to global Industry behavior Strong consolidation started Adaption to media competition Uneven global growth (stagnated, mature and growing markets) Industry behavior Response to media competition Understanding of regional differences in mature and emerging markets Additional management of non-paper business (Revised strategy) Customer requirements Quality and grade development driving forces Customer requirements Quality and grade streamlining as driving force Increasing markets in emerging countries Customer requirements Quality and grade specialization as driving force Choice between different media Capabilities needed Top management production focused Result? Capabilities needed Cost and short-term focused management Capabilities needed Adaptive and healthy longterm performance of global industry

4 Forest Industry Roadmap Future Papermaking Visions Time period 0-5 a Time period 5-10 a Time period 10+ Driving force Energy scarcity Driving force: Water scarcity Logistic shrink Driving force: Raw material scarcity (fiber, oil-based polymers, pigments) Technologies Simplification of paper making processes Embedded automation and measurement systems with ICT Layering concept/ fractionation with embedded chemistry Solutions Global Technologies: Higher web forming consistencies Natural and biodegradable process chemicals / fillers and binders New energy and water saving processes Solutions Emerging & regional Technologies: Utilization of biomass for multiple purposes biorefinery Nanotechnology applications Application-specific optimization of raw materials by genetic engineering One-man paper machine Solutions All regional

5 Forest Industry Roadmap Forest cluster today and in long-term M/C with embedded automation Machine Printed intelligence Bioenergy Pulp and Paper Process Pulp and Paper Process and product innovations Process, product and service innovations

6 Forest Industry Roadmap The Priorities of the Finnish Forest Cluster s Research 1. Smart wood and fibre products 2. New products made from wood-based materials 3. A biorefinery that utilises wood diversely Renewal Sustainable Development Competitiveness 4. Sustainable forest management 5. Increased value for wood biomass 6. Intelligent, resourceefficient production technologies 7. Customer solutions for the future Next steps for implementing?

7 European Industrial Technology Platforms The supplementary platforms how to develop thorough multidisciplinary co-operation?

8 Roadmap Pulp and Paper Processing Technologies Re-engineering the fibre-based value chain Process technologies for wood-based bio-refineries Creation of flexible and scalable production systems Production technologies for new fibre-based products Technologies for flexible, on-demand printing and packaging manufacture Increasing resource efficiency in pulp & paper production and converting Efficient materials usage, including recycled materials, water and waste Development of radically new technologies substituting energy-intensive processes TARGETS Flexibility in production Customer-oriented Products & Services Enhanced Efficiency Improved Sustainability Energy carriers from wood-biomass Technologies for converting wood-based biomass into energy carriers today short term medium term long term TIME priority area Source: Fraunhofer

9 Biofuels for Transport Bio-based Products Market Forecast biofuels plant extracts pharma ingredients bulk chemicals and polymers food/feed ingredients oleochemicals enzymes others : 77 billion EUR IB related sales in chemicals (7% sales of the chemical industry) 2010: 125 billion EUR IB related sales in chemicals (10% sales of the chemical industry) McKinsey

10 National and EU-level Roadmaps ClusterTech approach In In this thisway, the the wide wide interests of of the the participants canbebest covered and and an an EUlevelevel EU- roadmap constructed Narrow focus Cases focussing more narrowly on a topic linked to new technologies and processes Cases focussing more narrowly on a topic linked to bioenergy Technology and processes Bioenergy Cases taking a broader, national view with an emphasis on new technologies and processes Broad focus Cases taking a broader, national view with a biofuel emphasis

11 National and EU-level Roadmaps ClusterTech Cases Emphasis: Bioenergy to process, material and technology ExtremeTech 50/60 for growth Technology and processes Finland2020 Reducing fossil fuel dependency Narrow focus Focus: Narrow to Broad Broad focus Bioenergy

12 Technology Development - New Pulp Mills and Lines During the last five years the majority of new pulp mills and pulp making lines have been built in China ton Oceania Africa Latin America Middle East Rest of Asia China Japan North America Eastern Europe 1000 ton 100 % 80 % 60 % 40 % 20 % Rest of Western Europe Nordic Countries 0 % xxx01 Source: Pöyry

13 Technology Development New Paper Machine Start-ups Ktpy (capacity) Oceania Africa Latin America Near East Rest of Asia China Japan North America East Europe Oth W. Europe Scandinavia 100 % 80 % 60 % 40 % 20 % 0 % Traditional pulp and paper making on the way to China! How we can specialize to stay competitive? Source: Hannu Oinonen

14 Technology Development Options for forest industry Paper and Market pulp Pulp & Paper Mill Power Heat < 500 MWf Bark boiler BioElectricity Bark Power Steam Biochemicals Forest biomass in future also urban waste and straw - Southern hemisphere plantations Wood handling Wood residues Biofuel production < 400 MWf Optional Biofuels: (pellets) bio crude EtOH/MeOH SyntheticDiesel Crude Oil Source: VTT Refinery

15 Technology Development: Bark Dryer The heating value of forest residues can be doubled by waste heat dryer. The moisture content from 50 to 30 w-% -> Low value residues instead of roundwood double heating value achieved reduced emission level

16 Technology Developments Near Future For some time, evolutionary development with larger and streamlined mills and logistic chains. More careful segregation of wood raw material. Non-wood and recycled fibers seeking new position. Potential breakthrough technologies in pulping can include: sulphur-free pulping for hardwoods higher consistencies in paper making functional and add value products for consumers Gasification of solid biofuels/black liquor for production of bioenergy

17 The Integrated Forest Biorefinery Conclusions The European forest industry, for the first time, gathered its collective strength in both FTP and BFT and is seriously examining future technology options First time, in the Finnish ClusterTech project, a wide crosscluster base of forest, energy and chemicals together prepares future R&D focus. Outcome is both national and EU-level global scenarios and roadmaps, such as 50/60, ExtremeTech, Cut down oil dependency. Concrete RTD&D&D plans. The forest industry and the food industry offer the only short term options for concrete solutions in the forest case, based on wood residues

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19 KUORI PUU PAPERI SELLU TEHDAS KUIVURI ILMA HÖYRY- KATTILA TEHOKKUUS PÄÄSTÖT JÄTEVESI

20 Technology Development Power Without Greenhouse Gases Source: Andritz Oy / P. Rahkila